Interface Inc. (NASDAQ:TILE) reported fourth-quarter results on Tuesday that exceeded profit expectations, while revenue came in just shy of analyst forecasts, sending shares modestly higher in after-hours trading.
The flooring manufacturer posted adjusted earnings per share of $0.49, beating the consensus estimate of $0.40. Revenue totaled $349.4 million, slightly below expectations of $349.64 million, but still representing a 4.3% increase year over year, or 1.6% growth on a currency-neutral basis.
Adjusted gross profit margin expanded by 169 basis points from the prior year to 38.6%, supported by favorable pricing dynamics, product mix improvements, and a one-time inventory reserve adjustment. These gains were partly offset by higher input costs.
For full-year fiscal 2025, Interface delivered record net sales of $1.39 billion, up 5.4% compared with the previous year. Adjusted earnings per share rose 32.9% to $1.94 from $1.46 in fiscal 2024.
“We delivered record results in 2025 as our team executed well in a dynamic macro environment,” said Laurel Hurd, CEO of Interface. “Currency-neutral net sales increased 4% YoY, driven by growth across all regions, all product categories, and key market segments.”
Looking ahead, the company forecast first-quarter fiscal 2026 revenue between $315 million and $325 million, with the midpoint of $320 million above analyst expectations of $315 million. Interface noted that fiscal 2026 will include 53 weeks, with an additional week falling in the first quarter.
For the full fiscal year 2026, Interface expects net sales in the range of $1.42 billion to $1.46 billion. Adjusted gross profit margin is projected between 38.5% and 39.0%, while adjusted SG&A expenses are anticipated to account for 26.2% to 26.4% of net sales. Capital expenditures are expected to total approximately $55 million.